The rupee ended the day slightly down, closing at 83.50 against the US dollar, a decrease of 1 paisa.At the close of trading, the BSE Sensex fell 36.22 points or 0.05% to close at 79,960.38. The NSE's 50-share index Nifty fell marginally by 3.30 points or 0.014% to close at 24,320.55.read more:- Aurangabad: ₹191 Crore Aid Announced for 6 Lakh Cotton Growers
Rupee Gains 5 Pennies Against US Dollar to 83.44At the interbank foreign exchange market, the local unit opened at 83.45 and gained further to 83.44 against the greenback, registering a rise of 5 paise from its previous close.Read More :> Aurangabad: ₹191 Crore Aid Announced for 6 Lakh Cotton Growers
₹191 Crore in Aid Announced for 6 Lakh Cotton Growers in AurangabadChhatrapati Sambhajinagar District Farmers to Receive Government Compensation for Crop LossesIn Chhatrapati Sambhajinagar district, around 6 lakh farmers have faced significant losses in their cotton crops, which covered an area of 3.84 lakh hectares. The state government has announced a financial aid package of ₹191.50 crore to assist these farmers.For the past two years, cotton growers have suffered substantial losses due to plummeting cotton prices. In response, the state government committed to providing compensation of ₹5,000 per hectare to affected cotton farmers. This aid will soon be disbursed to the 6 lakh farmers in Chhatrapati Sambhajinagar who experienced these losses.In contrast to Chhatrapati Sambhajinagar, other districts in Marathwada have seen a significant decline in cotton production over the past decade. Farmers in these areas have increasingly shifted to soybean cultivation. However, farmers in Chhatrapati Sambhajinagar continue to cultivate cotton, often referred to as "white gold."During the last Kharif season, cotton was planted on approximately 80% of the cultivated land in the district, equating to about 3.84 lakh hectares. Over the past two years, cotton prices have dropped to ₹6,500 per quintal, and production has halved due to inadequate rainfall last year.Given these challenges, the state government has announced compensation of ₹5,000 per hectare for up to two hectares of land per farmer. As preparations for the upcoming Kharif season are underway, this announcement has brought much-needed relief and optimism to the farmers in the district.Read More :> Government Set to Revive Cotton Technology Mission with ₹500 Crore Allocation for Five-Year Plan
The rupee initially gained ground but ended the day nearly unchanged at 83.49 against the US dollar on Friday, with trading activity subdued.Sensex, Nifty end flat; Nifty Bank down nearly 1%Indian benchmark indices ended flat in the volatile session on July 5. At close, the Sensex was down 53.07 points or 0.07 percent at 79,996.60, and the Nifty was up 21.60 points or 0.09 percent at 24,323.80.read more:- Despite Government Efforts, Punjab Sees Record Low Cotton Cultivation
The government is planning to revive the Cotton Technology Mission and allocate ₹500 crore for a five-year plan.Finance Minister Expected to Announce Funding for Overhauled SchemeIn the upcoming budget, the central government is anticipated to unveil a revitalized Cotton Technology Mission aimed at integrating cutting-edge technologies to boost farmers' yields. This initiative is being collaboratively developed by the Ministry of Textiles and the Indian Council of Agricultural Research (ICAR), according to sources.Initially launched in 1999-2000, the Technology Mission on Cotton (TMC) was a three-year program extended several times until it concluded in 2013-14. Between 2000 and 2010, the government invested ₹421 crore in TMC. Since 2014-15, cotton has been included under the National Food Security Mission (NFSM), a move some experts argue has diluted the focus on this crucial crop.The revamped TMC will concentrate on two main components: Mini Mission I (MM I) and Mini Mission II (MM II). MM I will focus solely on research, while MM II will emphasize extension work, fostering a connection between farmers and the industry.ICAR's Request and Funding AllocationSources indicate that the Finance Minister may announce funding for the revamped TMC over a five-year period, responding to ICAR's recommendation that funding for cotton research projects should span at least four years to achieve meaningful results. Union Textile Minister Giriraj Singh is reportedly eager to expedite the rollout of the revamped TMC, having engaged directly with leading agricultural scientists and ICAR Director General Himanshu Pathak.Although specific details are still being finalized, official sources suggest that an allocation of at least ₹500 crore over the five-year period is necessary to yield significant results. While there is some resistance to providing direct subsidies, the government is exploring options to facilitate easy credit from banks for farmers. This would involve private industry covering the repayment burden, which would then be adjusted against cotton sales.Potential Introduction of New Bt CottonCotton farmers may also be provided with short-term crop loans at higher limits than the current ₹3 lakh at subsidized interest rates. This would enable them to invest in infrastructure improvements and adopt best management practices, including the latest technologies, according to a cotton seed expert.Last week, Minister Singh indicated that a new variety of technologically advanced Bt cotton might soon be approved for commercial cultivation, potentially benefiting the Indian textile industry significantly. He emphasized efforts to address labor issues in the textile sector by leveraging the Self-Help Groups (SHG)."Trials of Herbicide Tolerance (HT) Bt cotton (also known as BG III) are underway. Once ICAR completes its assessments and necessary approvals are obtained, commercial cultivation could be permitted," Singh told BusinessLine. This variety could reduce production costs for farmers, increase the area under cotton cultivation, and significantly benefit the textile industry.Read More :> Surge in Chinese Fabric Imports Raises Concerns Among Indian Textile Manufacturers
In early trade, the rupee climbs 5 paise to 83.45 against the US dollar.The rupee depreciated 5 paise to 83.53 against the US dollar in early trade on Wednesday, weighed down by the strong American currency and elevated crude oil prices.Read More :> Despite Government Efforts, Punjab Sees Record Low Cotton Cultivation
This evening, the rupee appreciated 4 paise to close at versus the US dollar.At the close of trading, the BSE Sensex closed at 80,049.67, up 62.88 points or 0.079%. During the day's trading, it touched a new high of 80,392.64. On the other hand, the NSE's 50-share index Nifty closed at 24,302.15, up 15.65 points or 0.064%. During the day's trading, it touched a new all-time high of 24,401.00.read more:- Despite Government Efforts, Punjab Sees Record Low Cotton Cultivation
Even with government efforts, Punjab's cotton cultivation is at an all-time low.Despite efforts by the government, Punjab has recorded its lowest ever area under cotton cultivation this season. The state aimed to bring 2 lakh hectares under cotton cultivation, but the area has shrunk to about 97,000 hectares, marking an all-time low according to agriculture experts.Last season, Punjab had 1.73 lakh hectares of cotton. This sharp decline in cotton acreage is attributed to several factors, including severe pink bollworm (PBW) infestation, weak prices for the cotton crop, and rising labor costs.Bathinda has seen a drastic reduction in cotton cultivation area. In 2022-23, about 70,000 hectares were under cotton cultivation in Bathinda district, which declined to 28,000 hectares in 2023-24 and further to 14,500 hectares in 2024-25.Dr. Karanjeet Singh Gill, Chief Agriculture Officer (CAO) of Bathinda, pointed out that intense heat conditions during the sowing period contributed to the decline in cotton cultivation this season. He emphasized the need to adopt new methods to control diseases affecting cotton plants.In Faridkot district, where the area under cotton cultivation has fallen to just 1,000 acres this season, the agriculture department is striving to attract farmers to cotton cultivation by offering various incentives. These include subsidies on seeds, quality pesticides and fertilizers, and free Pheromone Traps to catch and monitor pink bollworms.Read more :> Surge in Chinese Fabric Imports Raises Concerns Among Indian Textile Manufacturers
Indian Textile Manufacturers Are Concerned About the Increase in Chinese Fabric ImportsThe Gujarat textile industry is grappling with an influx of low-cost fabric imports from China, prompting industry representatives to raise the issue with Union Textile Minister Giriraj Singh. Reports indicate that China is supplying cotton-like fabric at nearly half the price of Indian cotton fabrics, adversely affecting domestic manufacturers. Ahmedabad is renowned as India’s cotton textiles hub, while Surat is known for its polyester textiles industry.Gaurang Bhagat, President of the Maskati Cloth Market Association, stated, “China has been dumping fabrics for a long time, and the past few months have seen a surge in imports from the country. Prior to last Diwali, there was a significant increase in Chinese fabric imports. There have even been instances of Chinese suppliers sending goods with lower invoices to pay less duty, which is detrimental to the domestic textiles sector. We demand restrictions on fabric imports from China.”Last week, industry representatives met with Union Textile Minister Giriraj Singh to discuss this issue. Bharat Chhajer, former Chairman of the Powerloom Development and Export Promotion Council (PDEXCIL), said, “At the meeting, we highlighted the problem of Chinese fabric dumping. We demand that the central government set a base price for imports. The Centre has already implemented such a system for the knitting industry following substantial imports from China. Similar measures are needed to protect the domestic textiles industry.”Sandeep Shah, Co-Chairman of the Textile Task Force of the Gujarat Chamber of Commerce and Industry (GCCI), added, “China is dumping polyester and synthetic fabrics in the Indian market at almost half the price of cotton-like fabrics, severely impacting the market. The demand for cotton textiles is shrinking due to higher prices, forcing domestic manufacturers to blend polyester to remain competitive. Restrictions on Chinese imports are essential.”Read More :> Indian Textile Sector Shows Robust Signs of Post-Pandemic Recovery
In early trade, the rupee drops 5 paise to 83.54 against the US dollar. At the interbank foreign exchange market, the rupee opened at 83.52 and lost further ground to trade at 83.54 against the greenback in initial deals, registering a fall of 5 paise from its previous closing level. Read More :> India's Yarn Exports to China Surge to 21% in FY24, Up from 10% in FY23
India's FY24 Yarn Exports to China Increased to 21% from FY23's 10%This increase was fueled by competitive pricing of Indian cotton yarn and global concerns regarding Xinjiang cotton production, prompting markets to turn to India as an alternative supplier. Together, Bangladesh, China, and Vietnam accounted for 60% of India's cotton yarn exports.India’s cotton yarn exports soared by 83% during the fiscal year, raising the share of yarn exports to 32% of the country's total production, up from 19% in FY23. This export growth helped offset domestic market challenges, where demand remained subdued despite a 9% increase in overall cotton yarn production.Domestically, cotton fiber prices, after peaking in the first half of FY23, fell by 25% in FY24 due to weaker demand. Looking ahead, despite an anticipated 6% reduction in cotton fiber production for 2024 due to decreased sown areas, carry-over surplus from previous years is expected to stabilize prices.The ongoing Red Sea conflicts have had minimal impact on cotton yarn exports, as most shipments were directed to stable markets like Bangladesh, China, and Vietnam. However, prolonged conflict could potentially disrupt apparel export volumes, indirectly affecting cotton yarn export volumes and prices.For FY25, domestic spinners expect a modest volume growth of 4-6%, driven by increased exports to Bangladesh and China. This outlook is supported by competitive yarn pricing and a gradual recovery in export demand, while domestic consumption remains subdued.Read more :- Indian Textile Sector Shows Robust Signs of Post-Pandemic Recovery
This evening, the rupee concluded at Rs 83.53 against the dollar, marking a slight depreciation of 2 paise.At the close of trading, the BSE Sensex rose 545.34 points, or 0.69%, to close at 79,986.80. During the day, it touched a new high of 80,074.30. The NSE's 50-share index Nifty rose 162.65 points, or 0.67%, to close at 24,286.50. During the day, it touched a new all-time high of 24,309.15.read more:- July Likely to Receive Above-Normal Rainfall
Indian Textile Industry Is Showing Strong Recovery After PandemicThe Indian textile sector is demonstrating signs of recovery, with the latest report from Avendus Spark indicating that the industry's revenue grew by approximately 8% in the last quarter of the fiscal year 2024 (4QFY24) compared to the previous year. Despite a 5% drop in yarn prices, which limited overall growth, stabilising cotton prices are expected to align value growth with volume growth soon.The report also highlighted that Indian cotton prices are currently lower than global prices, aiding cotton spinners in increasing their volumes. This competitive pricing has led to robust margin expansion for cotton spinners due to higher utilisation rates and stable cotton prices.Global retailers and brands have reported that their inventory levels have returned to pre-COVID standards, contributing to the sector's positive outlook. However, the report cautions that demand remains uncertain as garment companies await a boost in order book momentum, suggesting that the order cycle may remain shorter than usual for the foreseeable future.Home textile companies experienced a particularly strong quarter, with a 16% growth in value as Indian exporters gained market share. Garment manufacturers also reported a 4% revenue growth despite the challenges of price fluctuations.The report observed that cotton-related exports increased by 20% sequentially and 18% year-over-year (yoy). Although Indian cotton prices were briefly lower than global prices, boosting demand, they are currently about 13% higher than global prices.In 4QFY24, EBITDA margins for garment manufacturers improved by 177 basis points, primarily due to lower input costs. Vertically integrated players reported better margin growth compared to their peers.Among various textile segments, home textiles continued to excel, with a 15% yoy revenue growth driven by strong demand and increased exports. India's market share in US cotton sheet imports reached an all-time high of 62%, according to Avendus Spark.However, EBITDA margins fell by 80 basis points, indicating a potential slowdown in volume demand. Man-Made Staple Fibers (MMSF) saw a 5% yoy revenue growth, but cheaper imports from countries like China and Bangladesh led to pricing pressures. Capacity constraints also limited volume growth opportunities for MMSF players. Several companies plan to increase capacity in the coming quarters, potentially driving growth. The Production Linked Incentive (PLI) scheme is expected to encourage further investments in MMSF yarn production, the report noted."The top layer of exporters has started getting booked. The next couple of layers of exporters in most of the big hubs are getting many enquiries, and everyone is hopeful that these enquiries will result in an order book that would be better than last year," said Pawan Gupta, CEO and Co-founder of Fashinza, reacting to the report.Read More :> INTERVIEW: CAI President on CNBC (1/7/24)
In early trade, the rupee drops 5 paise to 83.53 against the US dollar.The Indian rupee weakened by 5 paise to 83.53 against the US dollar in early trade on Wednesday, weighed down by a strong US currency and elevated crude oil prices. Read More :> July Likely to Receive Above-Normal Rainfall
It's Likely to Rain More in July Than UsuallyThe India Meteorological Department (IMD) has forecast above-normal rainfall for most parts of the country in July, except for the northeast and some eastern states like parts of western Bihar, eastern Uttar Pradesh, and Jharkhand. According to the IMD's monthly outlook, rainfall across the country in July is expected to be above normal, exceeding 106% of the long-period average (LPA) of 280.4 mm. The IMD warned of a high likelihood of extreme rainfall in Odisha, Karnataka, Haryana, parts of Uttar Pradesh, Chhattisgarh, and Jharkhand.The monsoon is predicted to intensify in the second half of the season (August-September) as La Niña conditions develop, while El Niño conditions over the equatorial Pacific remain neutral. In India, El Niño is associated with poor monsoons, whereas La Niña typically brings abundant rainfall.Additionally, the IMD forecast that minimum temperatures in July will likely be above normal in many parts of the country, except for some areas in the northwest, central India, and the southeastern peninsula. Maximum temperatures are expected to be normal to below normal in parts of northwest India and southern peninsular India, excluding the west coast.The IMD noted that northwest India experienced its warmest June since 1901, while the east and northeast regions had their fifth warmest June since 1901. This led to the highest number of heatwave days (181) in the last 15 years, surpassing the previous record of 177 days in 2010.This summer, India experienced its second hottest period, with 536 heatwave days across various meteorological subdivisions—the highest in the last 14 years after 2010, which had 578 days.In addition to the extreme heat in June, India also faced a deficit monsoon, receiving 11% less rainfall than normal, marking the seventh lowest rainfall in the past 24 years. The northwest region had the highest deficit, followed by the east, northeast, and central India. However, the southern peninsula received 14.2% above-normal rainfall. The subdued rainfall activity was attributed to a weaker Madden-Julian Oscillation and the lack of low-pressure systems forming over the Bay of Bengal.The IMD observed a trend indicating a higher probability of above-normal rainfall in July if June experienced deficit rainfall.Read more :- INTERVIEW: CAI President on CNBC (1/7/24)
CNBC interview with the president of CAI (1/7/24).QUESTION:How do you see cotton sowing for the new season in India?ANSWER:About 50-55% of the 60 lakh hectares have been sown so far, which is more than last year at this time. The main reason for this is Maharashtra having sown 20 lakh hectares so far, which is a little earlier than last year. So, we may see more sowing this time. We will have to wait till July 20-25 to know the actual total sowing.Cotton sowing in North India has gone down by about 40% to 50%. There are also reports from Gujarat that cotton sowing is down by 15-20%. Sowing in Khandesh and Vidarbha of Maharashtra may be down by 5-10%, but the sowing area in Marathwada will remain the same.Looking at the trend of farmers in North India and Gujarat, we can say that total cotton sowing in India will go down by 10-15%. The main reason is that the income of farmers in cotton sowing has decreased because the labor cost has increased and the production (yield) is very low. I read a research that in Gujarat if farmers grow peanuts they get Rs 50,000-60,000 per acre, while cotton only gives Rs 20,000.Where there is no water facility, farmers have no option other than cotton. And those who have water facility have many other options other than cotton. Looking at the trend of North India and Gujarat, we can say that there will be a 10-15% reduction in total cotton sowing in India.QUESTION:Which states are included in North India?ANSWER:North India includes Punjab, Haryana and Rajasthan. In Rajasthan, cotton sowing is done in lower Rajasthan and upper Rajasthan. So far this year, sowing has been done in 4.5 lakh hectares in Rajasthan, while last year sowing was done in 10 lakh hectares, so we can say that sowing in Rajasthan is 50-55% less.QUESTION:We have heard that the ministry is going to allow new seed technology. Will the new seed be used for sowing this year, or how long will it take?ANSWER:We have also received news of new seed permission on WhatsApp like you, but we do not have any official confirmation yet. If we get any official confirmation, we will inform the trade. Sowing of new seed is impossible this season as the sowing time will end by the end of July.If the new seed gets permission, it will be tested first, and only after the test is successful, the government will give the new seed to the farmers. Apart from this, the central government will have to take approval from all the states where cotton is grown. New seed will be given to the farmers only after getting approval from all the states. Considering this, it is a long process and it will take time.QUESTION:MSP has increased by 7%, cotton sowing has started. How is the cotton balance sheet of CAI and the demand from mills?ANSWER:This year cotton production and consumption are in similar numbers, around 318 lakh bales. Cotton exports are estimated at 26 lakh bales and imports at 16 lakh bales, so this export-import gap will reduce from last year's closing stock by around 10 lakh bales.The demand from mills is good, the demand from spinning mills is good, and mills are making a profit of Rs 5 to Rs 15 per kg of yarn. Cotton is also readily available and rates are reasonable. Indian mills are currently running at 90-95% capacity. Cotton mills in North India and Central India are running at 100% capacity.QUESTION:Volatility of 2-4% in ICE futures has become normal. What is its impact on the Indian market?ANSWER:Yes, I agree 100%, there is huge speculation going on in ICE futures. 2 months ago ICE futures went up to 103 cents and today it is at 72-73 cents, which is a drop of about 33%. But in India the prices have gone down by only Rs 3,000-4,000 as we have huge consumption of cotton. Also the arrival of cotton is almost over and CCI and ginners have very limited stock, so whatever price the stockers set, mills are buying. Mills will run in this limited stock for the next 3-4 months. This huge fluctuation in ICE is not having a good impact on the entire textile industry as the world market is following ICE futures.Read more :- Chinese Share of Indian Yarn Exports More Than Doubles in FY24
| title | Created At | Action |
|---|---|---|
| The rupee closed 1 paisa lower at 83.50 against the US dollar this evening. | 09-07-2024 00:00:22 | view |
| Rupee Rises 5 Paise to 83.44 vs US Dollar | 08-07-2024 17:16:52 | view |
| Aurangabad: ₹191 Crore Aid Announced for 6 Lakh Cotton Growers | 06-07-2024 18:09:51 | view |
| This evening, the rupee closed at 83.49 against the dollar without any change. | 06-07-2024 00:45:18 | view |
| Government Set to Revive Cotton Technology Mission with ₹500 Crore Allocation for Five-Year Plan | 05-07-2024 18:37:47 | view |
| Rupee rises 5 paise to 83.45 against US dollar in early trade | 05-07-2024 17:45:22 | view |
| The rupee strengthened by 4 paise to close at Rs 83.49 against the dollar this evening. | 04-07-2024 23:44:56 | view |
| Despite Government Efforts, Punjab Sees Record Low Cotton Cultivation | 04-07-2024 18:41:48 | view |
| Surge in Chinese Fabric Imports Raises Concerns Among Indian Textile Manufacturers | 04-07-2024 18:26:31 | view |
| Rupee falls 5 paise to 83.54 against US dollar in early trade | 04-07-2024 17:24:52 | view |
| India's Yarn Exports to China Surge to 21% in FY24, Up from 10% in FY23 | 04-07-2024 01:06:10 | view |
| The rupee closed 2 paise lower at 83.53 against the US dollar this evening. | 03-07-2024 23:57:16 | view |
| Indian Textile Sector Shows Robust Signs of Post-Pandemic Recovery | 03-07-2024 18:57:09 | view |
| Rupee falls 5 paise to 83.53 against US dollar in early trade | 03-07-2024 17:28:27 | view |
| July Likely to Receive Above-Normal Rainfall | 03-07-2024 01:36:49 | view |
| INTERVIEW: CAI President on CNBC (1/7/24) | 03-07-2024 00:45:53 | view |
